Pivot Based Trading - 1:2 risk reward ratio (Risk less Profit more)

[radha55]

Nifty Futures profit for today 22ndSeptember 2009.

at 10:25 - 10:30, the price of Nifty Futures was around 5005 - 5015.

This is between R1(4997.34) and R2(4516.47).

So we buy above R2 and sell below Pivot(4969.67).

Buy at R2 triggered at 10:38 am.

0.5% Target = 4538.58(achieved)
0.75% Target = 4549.87(not achieved).

So profit for today = 0.5% = 22 points.

Profit of 1000+ with one lot of Nifty.

 

[kkr555]

Thanks for providing a simple trading strategy.

I have a question.

As of Sep 22, 2009 close, Nifty SEP Futures has the following data in www.nseindia.com

Open Price: 4975.10
High Price: 5047.90
Low Price: 4972.10
Last Price: 5023
Close Price: 5030.75

To calculate the pivot, which of the price should be used as Closing Price ? Last Price or Close Price ?!?

 

[vinodkiyer]

Hi everyone,

I wish to thank Radha for this simple trading system.
I am a trader and always on the look out for the Holy Grail.
I found one in Dhiraj 2652 system which I converted into an afl for amibroker just yesterday. I also found some similarity with Radha's system so I decided to make an AFL for Amibroker using this system, which I finished Just Now and I will be trading Radha's system tomorrow.

The advantage of using the afl is that you can use it as an explorer or scannner so that it will select only those stocks ready for entry so we can rightaway enter and trade.

It also takes care of all the calculations automatically.

Before using the afl you have to set the parameters independantly for the chart and for the automatic analysis, must be done separately and must match each other.

I have also added many filters in the parameters, like, volume, to synch the trade with the movement of indexes if you like, can specify price ranges to avoid penny stocks, can filter gainers and losers, can vary take profit or stoploss values, get ready signal values meaning that you can watch a scrip or put stoploss entry orders before the entry signal is hit, etc all through parameters dialougue box.

I have set the afl to generate entry signal only from 1030 am onwards. you can also limit the last trade time through parameters dialougue box, I have set default as 1415 hrs can be changed as per individual settings.

I have used the rules put down by Radha on the first page of this thread.
You can also show/hide range lines (r1,r2 pivot etc) and trade lines (entry,exit sl lines) and markers (Buy?short arrows and getready triangles)

more effective as indicator and explorer because with scan you get direct buy or short signals.
audio alerts for all situations have been included.

Kindly those who have amibroker pls try it out and post results. I will also be trading this afl tomorrow.

Thanking Radha once again for this excellant method.
see attached

Regards
vinod

 

[columbus]

Thanks for providing a simple trading strategy.

I have a question.

As of Sep 22, 2009 close, Nifty SEP Futures has the following data in www.nseindia.com

Open Price: 4975.10
High Price: 5047.90
Low Price: 4972.10
Last Price: 5023
Close Price: 5030.75

To calculate the pivot, which of the price should be used as Closing Price ? Last Price or Close Price ?!?

Close price takes care of last 30 minutes
variations ,so better to take CLOSE price,
let us hear from Radha.

 

[radha55]

Please take the close price.

 

[radha55]

Nifty Futures Profit for 23rd September 2009.

At 10:25 - 10:30, the price of Nifty Futures was around 5015-5025.

This is very close to Pivot(5016).

So we buy above R1 and sell below S1.

Sell below S1(4985.94) triggered at 2:53 pm.

0.5% Target = 4960.075. (achieved)
0.75% Target = 4935.15 (not achieved)

So profit for today = 0.5% = 25 points.

Profit of 1000+ with one lot of Nifty.

 

[radha55]

Nifty Futures Profit for 24th September 2009.

October Series.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4935-4940.

This is between Pivot(4980) and S1(4933.7).

So we buy above Pivot and sell below S1.

Sell below S1 triggered at 10:42am.
0.5% Target = 4908.335 (not achieved)

0.5% Stoploss hit.

So loss = 0.5% = 25 points.

Now buy triggered at Pivot(4980) at 2:45 pm.

0.5% Target = 5004.9(achieved).
1% Target = 5029.8(not achieved).

So profit = 0.5% = 25 points.

Total profit = -25 + 25 = 0 points.

No profit No loss

 

[kkr555]

Dear radha55,

Although the results are the same, your trade is actually not right, is it not ?. You have used the Pivot value for SEPTEMBER series and used it instead to trade the OCTOBER contract.

Had you used the Pivot values for the SEPTEMBER series to trade the SEPTEMBER contract, here's what would have happened

At 10:25 - 10:30 am, the price of Nifty SEP Futures was around 4921-4925.

This is between S1(4933.70) and S2(4904.40).

So we should buy above Pivot and sell below S2.

Sell below S2(4904.40) was never triggered during the day.

Buy triggered at Pivot(4980.30) at 2:45 pm.

The High for Nifty SEP Futures was 4995.90. Therefore, the 0.5% Target = 5004.9 was never achieved. I got out at 4980 with no LOSS/PROFIT.

So profit = 0.0% = 0 points.

No profit No loss[/QUOTE]

Nifty Futures Profit for 24th September 2009.

October Series.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4935-4940.

This is between Pivot(4980) and S1(4933.7).

So we buy above Pivot and sell below S1.

Sell below S1 triggered at 10:42am.
0.5% Target = 4908.335 (not achieved)

0.5% Stoploss hit.

So loss = 0.5% = 25 points.

Now buy triggered at Pivot(4980) at 2:45 pm.

0.5% Target = 5004.9(achieved).
1% Target = 5029.8(not achieved).

So profit = 0.5% = 25 points.

Total profit = -25 + 25 = 0 points.

No profit No loss

 

[radha55]

Nifty Futures Profit for 25th September 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4980-4990.

This is between Pivot(4976) and R1(5031.76).

So as per rule, we buy above R1 and sell below Pivot.

Sell below Pivot(4976) triggered at 1:20 pm.

0.5% Target = 4951.12 (achieved)

1% Target = 4926.24 (not achieved) low was 4926.

So profit for today = 0.5% = 25 points.

Profit of 1000+ with one lot of Nifty.

 

[radha55]

Nifty Futures Profit for today 30th september 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 5010 - 5020.

This is between R1(5019.15) and R2(5037.5).

So as per rule, we buy above R2 and sell below Pivot.

Buy above R2(5037) triggered at 10:45am.

0.5% Target = 5062.185 (achieved)
1% Target = 5087.37(not achieved).

So profit for today = 0.5% = 25 points.

Profit of 1000+ with one lot of Nifty.